Organisation for Economic Cooperation and Development (OECD) secretary
general Angel Gurria on Tuesday gave a vote of confidence to the Greek
economy and an economic program currently implemented to deal with
Greece's excessive public debt.

Presenting the organization's report on Greece, Gurria said "I am here
to give a vote of confidence to Greece, to Greek citizens, to the Greek
economy and the government," adding that "the Greek program will succeed,
but reforms must continue".

The Paris-based Organization, in its report, forecasts that Greece
will return to growth in 2012, while Gurria stressed "there is life
after debt".

"We see the first evidence of macro-economic adjustment, exports are
improving along with competitiveness," he said.

Gurria urged an effective battle against tax evasion and acceleration of
reforms in the labour market. "Efforts must continue on reducing deficits,
improving tax collection mechanisms and combating tax evasion," he said.

Gurria said the Greek government privatization program was ambitious and
noted it was linked with growth and that combined with economic reforms,
it could contain the country's debt to below 60 pct of GDP by 2035.

"The effort you are making is making sense. It is feasible to succeed
and we are here to help you succeed to stop this uncertainty and negative
climate created by the crisis," the OECD's chief said.

Greek Finance Minister Evangelos Venizelos said the message sent by Gurria
towards markets and the world was simple and clear: "Yes, Greece can",
adding that Greece must not only succeed in having a sustainable public
debt, but also the state and the society. Commenting on European help
to boost economic growth in the country, Venizelos said "a European
Marshall Plan for Greece has already begun".

He reiterated that the domestic banking system was stable and stressed
that there are guarantees of the liquidity and capital adequacy of banks,
even of the smallest ones.

Development, Competitiveness and Shipping Minister Mihalis Chryssohoidis
said that "at last, the Greek economy has begun producing good news and
that's the basic thing we must hold on to in OECD report".

The problems of Europe and the Eurozone were wider than the debt crisis in
Greece, as reflected by the Eurozone leaders' decision for a permanent
financial assistance mechanism, Greece's Foreign Minister Stavros
Lambrinidis stressed in an interview broadcast by the BBC programme
HARDtalk on Tuesday.

"Scape-goating Greece is not the answer," he told HARDtalk's Tim
Franks, while insisting that the Greek government and Greek people had
demonstrated both the necessary political will and a readiness to make
sacrifices in order to bring about essential changes and reforms.

He highlighted the need for tax reforms in Greece, noting that the
revised tax system paid more attention to assets than declared income
in a bid to combat tax evasion. He especially highlighted the need for a
change in tax culture, reporting a small "cultural revolution" in Greek
attitudes to paying taxes and action to usher in a much fairer tax system.

Lambrinidis conceded that Greece was unique in that it had "an explosive
combination of debt and deficit" but insisted that Europe had structural
problems that ran deeper, as shown by recent attacks on the credit
ratings of large European economies like Italy.

Lambrinidis noted that until now, Greeks had been called to make
sacrifices and European tax-payers to put up money that seemed to be
going nowhere because the debt problem was not a purely Greek problem
but a European problem that required a European solution in order to
be stabilised.

The Eurozone's new bailout package of 150 billion euro for Greece would
give the necessary stability for Greece to carry out tough reforms
without pressure from markets or anyone else, he added, noting that the
recent decisions of the Eurozone summit had begun to address Europe's
problems effectively.

The minister underlined that Greece's goal now was to convert the deficits
that increased debt to primary surpluses in the next two years, noting
that the government had succeeded in reducing the deficit by 5 percentage
points in 2010 alone, a feat unprecedented by any European economy.

Main opposition New Democracy (ND) leader Antonis Samaras on Tuesday
launched a scathing attack on the government, accusing it of oligory
and incompetence in managing the projects funded under the National
Strategic Reference Framework (NSRF).

Samaras said that he has in vain been trying, for the past 20 months,
to convince the government to move ahead with the NSRF projects, while
he also accused the government of immobilizing the mechanisms, instead
of activating them, and for having 'forgotten' for many months to even
designate the relevant secretary general.

"In a difficult period for the economy, a sum of 18 billion euros
remains provocatively inactive," Samaras said, accusing the government
of preferring to cut salaries and pensions and leaving unexploited a
real opportunity for jump-starting the Greek economy.

He said that it had been necessary for the EU partners to point this
out to the government for it to finally mobilise, and noted that immense
loss has resulted from that delay.

Calling on the premier to take a stance and assume his responsibilities,
Samaras questioned who is to blame for this "provocative indifference",
and: "Who will give account, Mr. Papandreou. No one?"

Replying to criticism from main opposition New Democracy on Tuesday
concerning absorption of National Strategic Reference Framework (NSRF)
funds, the development, competitiveness and shipping ministry said the
main opposition party was suffering from "confusion".

It replied to ND's accusations of "negligence and ineptitude" by citing
the annual Organisation for Economic Cooperation and Development (OECD)
report on Greece published earlier the same day that "welcomed recent
achievements in the direction of a faster absorption of EU structural
funds".

"It is unfortunate but it seems that there is confusion within ND, perhaps
because the disaster scenarios on which they have largely supported their
opposition tactics are failing to be verified," the ministry countered.

The OECD report urged Greece to continue the good work that helped lift
organisational and other obstacles to the absorption of Community funds.

"The government has proved that it does not really want a consensus and
that its interest in tourism, the country's biggest industry, is non
existent," main opposition New Democracy (ND) party spokesman Yiannis
Mihelakis stressed on Tuesday.

He made the comments in response to statements by Tourism and Culture
Minister Pavlos Geroulanos after a proposal by ND leader Antonis Samaras
suggesting the establishment of a "national contract for tourism".

"Using insults and lies, the government rejects specific proposals
tabled by ND in support of the tourism sector," he said, adding that
the proposals in question have the backing of the Federation of Greek
Tourism Enterprises (SETE).

In an announcement, Geroulanos had accused Samaras of making the proposals
in an attempt to mend his party's image in the wake of society's outcry
after ND had incited the taxi owners's protests, without considering
the cost to tourism or the country's image abroad.

European Commission's new proposals that lowered national participation
in the National Strategic Reference Framework (ESPA) programmes were
characterized by opposition Communist Party of Greece (KKE) as "additional
measures that support business groups and accelerate anti-popular labour
market restructuring".

A statement issued by the KKE Central Committee on Tuesday underlined
that the new proposals are placed within the framework of the efforts
aimed at implementing a new attack on the workers and the peoples of
the EU as dictated by the "agreement on the euro".

Popular Orthodox Rally (LAOS) leader George Karatzaferis on Tuesday tabled
a current question in parliament addressed to the prime minister on the
"new Marshall-type plan for Greece which mainly concerns the disbursement
of NSRF (National Strategic Reference Framework, or ESPA) funds".

Karatzaferis asks prime minister George Papandreou what the latter's
government intends to do to substantially cut down on bureaucracy and to
create a more attractive environment for prospective Greek and foreign
investors.

He also asks when the process of disbursement of NSRF funds will begin,
and towards what areas those funds will be channeled.

Justice Minister Miltiadis Papaioannou on Tuesday lashed out at striking
taxi owners who resort to "extreme forms of violence".

Speaking to an Athens private radio station, Papaioannou stressed that
"in essence, certain individuals wish to disrupt the country's democratic
development; the stabilization of the economy. They are criminals to
say the least."

He accused the taxi owners' representatives of not responding to the
invitation for dialogue made by the prime minister and added that "they
did not show consideration for Greece's tourism. Most of all, they did
not respect the country's image. The picture of Greece sent abroad is
not doing justice to the country. The picture created by certain taxi
owners is not reflective of Greece."

The justice minister stressed that the increased use of violence tends
to become an "endemic phenomenon", adding that "society cannot tolerate
such situations".

"Aside from cancelling out important things, like the country's economy,
it undermines democratic function and the democratic institutions. They
should realize that this country has a Constitution and laws which we
have to respect," he stressed.

"Such issues need to be prevented, they call for ideological and political
handling and they should be met with unreserved condemnation. A government
decision might not be the best but this cannot justify the phenomena we
are experiencing," he concluded.

[10] "Hood-wearing individuals will not be allowed on the internet,"
justice minister says

A legal framework for crimes committed on the internet will be promoted
by the ministry of justice starting with the identification of blog
providers, it was announced on Tuesday.

Briefing the parliamentary Special Permanent Committee on Institutions
and Transparency, Justice Minister Miltiadis Papaioannou warned that
"the internet will cease to be the host 'hood-wearing' individuals".

"Electronic crime should be combated without undermining the freedom of
speech and opinion," the justice minister stressed and told MPs that a
law preparatory committee will be set up immediately chaired by Council
of State vice-president Athanassios Rantos. The committee will focus on
the identification of blog providers and internet service users and on
expanding the list of crimes for the investigation of which disclosure
of confidential communication is allowed.

A memorandum of cooperation between John Jay College of Criminal Justice
at City University in New York and the Centre for Security Studies (KEMEA)
in Greece was renewed on Tuesday, with the signatures of Greek Citizen
Protection Minister Christos Papoutsis and John Jay College President
Jeremy Travis.

The memorandum extends cooperation between KEMEA and John Jay College
that began in 2007, focusing on issues linked to cross-border threats. It
calls for the joint organisation of laboratories, simulation exercises,
seminars and conferences, including an international conference on
security in Athens in 2014 and two seminars on "Migration and Security".

Also under the agreement, two police officers and two firemen are to
receive additional training in the United States.

"This concersn the renewal of an extremely successful cooperation,"
Papoutsis said afterward, stressing that security went beyond national
borders and could not be achieved without adequate knowledge of the
international environment and international cooperation in all areas.

"Without excellent knowledge of scientific and technological developments,
threats such as terrorism, narcotics, human trafficking and electronic
crime that have become international will constitute a global threat,"
the minister underlined.

A total of 20,000 pensions being claimed by people who are ineligible
- and costing state insurance funds an estimated 120 million euro -
have been traced as a result of crosschecking, Labour Minister George
Koutroumanis said on Tuesday.

Speaking to a private television station in Athens, Koutroumanis also
added that "as a result of the inspections conducted, there are many
who now conform and declare the deaths of pension recipients instead of
unlawfully collecting the money".

Koutroumanis revealed that by the end of the year IKA, Greece's largest
state insurance fund, will need an additional 800 million euro. Of these,
600 million have been included in the state budget, while the remaining
200 million euro will arise by cutting expenditures.

He underlined that for years, many businesses were not paying
contributions to social insurance funds and that notices have been posted
for debts of over 1 million euros to be followed soon by notices for
debts of over 500,000 euros.

Meanwhile, Deputy Health and Social Solidarity Minister Markos Bolaris
stated that recipients of a benefit for the visually impaired will be
re-examined to ensure that they are still eligible, after inspections
revealed that an excessive percentage of the population were receiving
the benefit on the Ionian island of Zakynthos.

The benefit is currently paid to 625 people on the island, corresponding
to 2 pct of the prefecture's entire population. The findings will be
forwarded to the responsible prosecutor to investigate possible criminal
liability of those involved.

Similar inspections will be conducted in other regions where such
phenomena occur, according to a statement issued by the ministry of
health.

Attica Bank on Tuesday announced its intention to examine a partnership
with Proton Bank, as part of a strategy to forge a larger-scale
bank. Attica Bank, in a statement, said it was examining the possibility
of a partnership with Proton Bank because of the synergies resulting
from such a deal and the need to boost its size, a necessary tool for
the development of the group particularly within current conditions.

Eurobank Properties on Tuesday reported net profits of 8.2 million
euro in the first half this year, after losses of 3.31 million euro
in the same period in 2010. The company attributed this significant
improvement to lower losses from a re-evaluation of its investments
reflecting a stabilization of prices in foreign markets, lower income
taxes and improving operating profitability.

Operating earnings rose to 21.094 million euro in the January-June period,
from 20.617 million euro in 2010. Cash reserves totaled 144 million euro,
while debt loan totaled 88 million euro. The company's internal value
NAV fell to 11.24 euros per share, from 11.49 euros in December, 31 2010.

[15] ADEDY calls for wave of strikes over state agency mergers, abolitions

The civil servants' union federation ADEDY on Tuesday urged its members to
react to a series of state agency abolitions and mergers announced by the
government with escalating strike action between the August 15 holiday
and a rally planned on September 10 at the Thessaloniki International
Fair (TIF). They call on federations and unions to commit to a plan
of labour mobilisations that includes 24-hour, 48-hour and long-term
strikes and protests.

ADEDY is also discussing new forms of protests, such as sit-ins at
workplaces, refusing specific duties and especially those that involve
collecting fees and charges from the public for the use of services,
neighbourhood information campaigns and others.

Meanwhile, at a press conference held by the POSPERT staff union at
the state broadcasting organisation ERT and those of another 11 state
agencies faced with mergers and outright closure, unions announced a
rally outside Parliament at noon on Thursday to protest against the
proposed draft bill and also announced plans for labour mobilisations.

Workers at Hellenic Defence Systems are continuing 24-hour rolling
strikes began on July 27 and have also occupied the management's offices
in protest against the company's privatisation.

-- Titan Cement Group on Tuesday reported a 65.7 pct decline in its net
after tax provisions and minorities earnings to 23.4 million euros in
the first half of 2011, compared with the same period last year. The
Group said turnover totaled 557 million euros, down 18.2 pct compared
with 2010, while EBITDA fell 12.4 pct to 141.4 million euros.

Greek stocks ended sharply lower in the Athens Stock Exchange on
Tuesday, pushing the composite index of the market to new 2011 lows,
amid a negative climate in other European markets. The index dropped
3.25 pct to end at 1,144.29 points, with turnover remaining a low 50.874
million euros.

The September contract on the FTSE 20 index was trading at a premium of
0.52 pct in the Athens Derivatives Exchange on Tuesday, with turnover
improving slightly to 27.055 million euros. Volume on the Big Cap index
totaled 8,500 contracts worth 21.565 million euros, with 30,350 short
positions in the market.

Reference buying rates per euro released by the European Central Bank:

U.S. dollar 1.438

Pound sterling 0.884

Danish kroner 7.560

Swedish kroner 9.148

Japanese yen 111.25

Swiss franc 1.121

Norwegian kroner 7.760

Canadian dollar 1.382

Australian dollar 1.327

General News

[20] Plaka, the 'Neighborhood of the Gods', where past and present
remain vibrant

Plaka, the "Neighborhood of the Gods" situated beneath the northeastern
slope of the Acropolis, is perhaps the most representative place in
Athens where not only old meets new, but where antiquity remains as
vibrant as the present.

Athens' oldest historical neighborhood, developed mostly around the
ruins of the Ancient Agora in an area that has been continuously
inhabited since antiquity, Plaka is built atop the residential areas
of the ancient town of Athens, and its narrow labyrinthine streets are
lined with neoclassical buildings.

It is known as the "Neighborhood of the Gods" due to its proximity to
the Acropolis and plethora of archaeological sites, but the area is also
dotted with little churches, most of them built in the 11th century
with impressive hagiographies, where services continue to be held,
and a number of museums.

During the Ottoman rule of Greece, Plaka was the seat of the Turkish
'voevode' (governor). In the 1821 Greek War of Independence, Plaka,
like the rest of Athens, was temporarily abandoned by its inhabitants
due to the heavy battles that took place, mostly in 1826, but was later
repopulated. A massive fire in 1884 burned down a large section of the
neighborhood, and archaeologists conducted excavations in the Roman Market
and Hadrian's library, with excavations continuing since the 19th century.

Indeed, excavations have proven that Plaka's main Adrianou Street is the
oldest street in Athens that is still in continuous use with precisely
the same layout since antiquity.

Hundreds of thousands of tourists swarm to Plaka all-year-round. The aura
of the old neighborhood remains unchanged, as Plaka is under strict zoning
and conservation regulations. It is the only neighborhood in Athens where
utilities (water, electricity, cable TV, telephone, internet and sewage)
lie underground in fully accessible, custom-made tunneling, while motor
vehicles are totally banned.

Striking taxi owners in the western port city of Patras on Tuesday decided
to break from the blockades of ports and airports staged by colleagues
around the country for the past four weeks and decided to take tourists
on free sightseeing tours themselves.

Tens of taxis went to the new Patras port on Tuesday and awaited the
arrival of a cruiseship from Cyprus.

They informed the disembarking passengers of their ongoing strike and
other mobilisations and gave the travelers free rides to Patras and a
tour of the city's sites.

The cab owners said that this was their way of helping the tourism sector,
a major contributor to the Greek economy and currently in peak season,
which has been hard-hit by the economic crisis and recession, but also
the taxi strike.

Greek authorities at 15:30 launched a major operation to rescue a group
of 13 illegal migrants, possibly of Afghan origin, sailing adrift in the
sea at a distance 25 nautical miles west of the Ionian island of Corfu.

The migrants were spotted by an Italian fisherman that informed the
Italian coast guard. Italian authorities alerted the Greek coast guard
that launched a search-and-rescue operation using a Bell helicopter that
has already picked up four of the migrants and a Super Puma helicopter.

Due to rough weather in the northern Ionian, coast guard vessels were
unable to reach the spot where the migrants were adrift but surrounding
ships have been alerted to provide assistance if necessary.

A 49-year-old man was found drowned off the coast of Sitia, Crete island,
and a 51-year-old man is missing when their fishing boat overturned and
sank. A third man, aged 27, was found alive and was picked up by a tug
boat, and has been hospitalised.

The three men had gone fishing on Monday when their boat started taking
on water and sank, leaving the three men stranded in the sea.

A rescue team rushed to the spot and found the younger man on an islet
and the body of the 49 year-old in the sea.

A wildfire that started in no less than 25 separate locations on the
Ionian island of Corfu on Tuesday led authorities to declare a state
of emergency.

The outbreaks, recorded in the north, west and south of the island,
erupted almost simultaneously. Corfu Mayor Yiannis Trepeklis told ANA-MPA
that villages are threatened by the flames and spoke about an organised
plan of arson.

The fire is just 10 km away from the city of Corfu, burning through forest
and farm land and spreading rapidly, fanned by strong winds blowing in
the region.

Forty firemen with 20 fire engines and two units of fire-fighters on foot
are battling the blaze, assisted by six water-bombing aircraft and two
helicopters. More firefighters are expected to arrive on the island soon.

A wildfire was reported on Tuesday in a remote region of forest at
Lagadakia on the Ionian island of Zakynthos. The fire began in a ravine
and is climbing up a mountainside. Eight firemen with four fire-engines
and three water-bombing aircraft are attempting to put out the blaze. Wind
speeds are moderate and no inhabited areas are at risk.

Cyprus President Demetris Christofias and Turkish Cypriot leader Dervis
Eroglu continued Tuesday their talks on the issue of governance and
power-sharing in the context of the intensified phase of UN-led direct
talks to solve the Cyprus problem.

Speaking after the meeting that lasted almost five and a half hours,
UN Secretary General's Special Advisor on Cyprus, Alexander Downer said
that the leaders spent a fairly long amount of time on Tuesday focusing
on the issue of governance and power-sharing.

"Leaders did discuss governance and power-sharing, and they will be
meeting again on Friday (5 August) in a similar format. And we'll
take up from where we've left off today and focus on governance and
power-sharing", he said.

Downer reiterated that the UN consider that the less is said publicly
about what happens in the discussions the more the chance is of having
a degree of success in the negotiations.

"These are very difficult negotiations, as we all know. We need to make
sure that they are conducted in a way that maximizes the opportunity for
reaching agreement. With that in mind we try to keep the contents of the
discussion at this stage, during this intensive stage, as confidential
as possible; that's a very important component of the process," he said.

He added that the substance is what ultimately matters, but having a
good process is an important component of that.

Replying to a question whether Eroglu submitted any new proposals on
the issue of governance and power-sharing, Downer said that it's best
for the purposes of the exercise not to go into the different proposals
that the two sides make.

"I think both sides should be able to talk around issues without any
prejudice to their final positions. There's been a good deal of discussion
about those sorts of questions today. I think this is a work in progress
and it's important it's understood to be a work in progress", he said.

Cyprus was divided when Turkey invaded in 1974. UN led negotiations have
been ongoing since 2008 between the leaders of the two communities in
Cyprus, in an effort to reunite the island under a federal roof.

President Christofias and Turkish Cypriot leader Eroglu met with UN SG
Ban Ki-moon in Geneva, on July 7th, and according to Ban's statement
after the meeting, they agreed to enter into an intensive period of
negotiations on the core issues of the Cyprus problem, with an aim of
achieving convergences before meeting again in New York, next October.

The United States strongly supports the Cyprus negotiations aiming to
reach a settlement reunifying the island as a bi-zonal, bi-communal
federation, a US State Department spokesperson has said.

Invited to comment on statements made by Turkish Prime Minister Recep
Tayyip Erdogan during his recent illegal visit to Cyprus' Turkish occupied
areas, Deputy Spokesperson of the US Department of State Mark Toner said
that the US position on Cyprus is well-known.

''The United States strongly supports the negotiations under the auspices
of the United Nations Secretary-General's Good Offices Mission under
Alexander Downer to reach a settlement reunifying the island as a
bi-zonal, bi-communal federation'', he noted.

Furthermore, he recalled that ''as Secretary Clinton reiterated during
her recent trip to Turkey, 'the status-quo - in Cyprus - has gone on
for too long'''.

The spokesperson added that both Greek Cypriots as well as Turkish
Cypriots could benefit from a solution on the island.

''We believe that both sides would benefit from a settlement, and we
strongly support the renewed, reenergized efforts that the United Nations
is leading and that the Cypriots themselves are responsible for, because
ultimately, they're the ones who have to make the hard decisions about
how to resolve all of the outstanding issues'', he went on to say.

In his statements Erdogan had questioned the existence of the Republic
of Cyprus and warned the EU that its accession negotiations with Ankara
would freeze if Cyprus assumes the Union's rotating presidency in July
2012 without a political settlement. He also ruled out the return of the
Turkish occupied areas of Morphou and Karpass to the Greek Cypriots in
an overall solution.

Cyprus has been divided since 1974, when Turkey invaded and occupied its
northern third. UN-led negotiations began in 2008 between the leaders
of the two communities in Cyprus, in an effort to reunify the island
under a federal roof.